A company's year-end data shows the following amounts. Current assets $65,000 Current liabilities $25,000 Net income $7,500 Net

Question

Nataliya [291]

2 years ago

10

A company's year-end data shows the following amounts. Current assets $65,000 Current liabilities $25,000 Net income $7,500 Net

sales $125,000 Total assets $150,000 Based on this information, what is the company's current ratio?

Mathematics

1 answer:

lozanna [386] · Answer 1 · 2023-04-05T03:03:08+03:00

The company's current ratio is 2.6.

<h3>What is the current ratio?</h3>

Current ratio is an example of a liquidity ratio. Liquidity ratios are financial ratios measure a firm's ability to honour its short terms obligations.

Current ratio = current asset /current liability

$65,000 / 25,000 = 2.6

To learn more about current ratio, please check: brainly.com/question/19579866

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